A monitoring and evaluation system for rural development projects has been designed for Nepal to assist the country in implementing the projects successfully. It has been developed specifically to keep track of projects and their progress, provide feedback to project management, help prevent and solve problems encountered during project implementation, and to simplify and streamline paper work. This system has been designed based upon the World Bank's recommendations. The system consists of various proformas designed to monitor and evaluate various project components through the selection of appropriate monitoring and evaluation indicators.